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European Majors’ 2023 AGM: Progress towards Low Carbon

Shu Ling Liauw

The research compares the emissions reduction targets against current performance (FY19-FY22) for the following companies:

  • BP - AGM on April 27, 2023

  • Eni - AGM on May 10, 2023

  • Equinor - AGM on May 10, 2023

  • Shell - AGM on May 23, 2023

  • TotalEnergies - AGM on May 26, 2023

Key findings

  • Despite higher cash flow, current capital expenditures remain concentrated in upstream production at $9 bn (FY22 peer average) compared to low-carbon portfolios of $3 bn (FY22 peer average).

  • Taken as a share of energy produced by FY30, the research estimates company portfolios will remain ~70-90% in oil and gas production, compared to 10-30% in low-carbon alternatives.

  • Shell, Eni and TotalEnergies have plans to increase oil and gas production between now and FY30. 

  • Companies should clearly articulate where they see opportunities within low-carbon value chains and their expected returns. BP is alone among its peers to provide its Internal Rates of Return (IRR) figures and guidance on earnings for low-carbon fuels.